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Returning Member
posted Jun 6, 2020 5:26:42 PM

How do I determine the income for the foreign fund (that I paid foreign taxes on): is it the Non-Qualified Dividend for that fund or the Qualified Dividend? I have both.

For the 1 mutual fund that I paid foreign taxes on, there are dividends for that fund as both Non-Qualified and Qualified Dividends.  Do I enter one of those, or enter the sum of both?

0 2 496
2 Replies
Level 15
Jun 6, 2020 6:13:52 PM

Enter only the nonqualified dividends for that field.

Not applicable
Jun 6, 2020 11:59:49 PM

from what I've seen parts of qualified and non-qualified can be foreign source income for the FTC.  if you got a  brokerage 1099-div form that may be indicated somewhere else on the forms.

 

from a brokers statements

Inter Pipeline (IPPLF) all dividends qualified FTC (Canada)

Sanofi SA     (SNY) all dividends qualified FTC (France)

Thorn Invt inc (TIBIX) Qualified $610,   Nonqualified $168 FTC $70 (source is various)  I doubt that the FTC was only on the NQ divs (the rate would be north of 40%) 

 

if the FTC on your dividends is $300 or less ($600 or less for married filing joint) form 1116 is not required. provided you have no other FTC that falls into other categories (on dividends it's passive income) 

also if form 1116 is required there is supposed to be a reduction in the qualified dividend amount 

 

even the instructions for form 1116 refer to foreign qualified dividends.   see page 7 because an adjustment to the amount may be required.

https://www.irs.gov/pub/irs-pdf/i1116.pdf